October 25, 2021
Mercer Superannuation (Australia) Limited today announced a suite of changes to its Mercer Super Trust offering effective 1 December 2021, including a simplified fee structure and enhanced insurance cover, which will improve outcomes for members and strengthen Mercer’s competitive position.
Mercer is committed to keeping fees as low as possible, without compromising on the high quality of the services it provides members.
From 1 December 2021, the dollar-based administration fees for Mercer Super Trust (MST) members paying headline administration fees will be reduced from $91.68 to $18 per annum, the second administration fee decrease Mercer has implemented this year. Tax credits on administration fees will no longer be passed back to individual accounts, but instead will be used for the benefit of the MST as a whole. Overall the changes will provide greater simplicity and easier comparison with key competitors.
As the number of members and assets continue to rise, Mercer will also be reducing investment fees for its range of sustainable investment options by 30 to 40 per cent.
In addition, Mercer has made improvements to its insurance offering, including expanding key definitions and scope of insurance coverage, broadening access to Total and Permanent Disablement (TPD) cover, extending insurance cover for older members and providing earlier access to terminal illness benefits. As a result, there will be a modest increase in premium rates for death and TPD insurance coverage for the majority of members from 1 December to reflect this increased level of protection.
Overall, these insurance changes are designed to provide greater risk protection and ensure Mercer members get the best possible outcomes during the moments that truly matter in their lives.
Importantly, three-quarters of Mercer’s SmartPath members achieved top quartile investment performance over 1, 3, 5 and 7 years to 30 June 2021 in comparison to all other MySuper default funds (SuperRatings Fund Crediting Rate Survey June 2021 – Default Options Median).
The announced changes are consistent with Mercer’s focus on providing a high-quality service tailored to the needs of members. Mercer remains committed to continually reviewing its offering, to ensure it delivers the best possible outcomes for members, underpinned by global scale and leading investment expertise in sustainable investments.
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Mercer believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Mercer’s approximately 25,000 employees are based in 43 countries and the firm operates in 130 countries. Mercer is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, with 81,000 colleagues and annual revenue of over $19 billion. Through its market-leading businesses including Marsh, Guy Carpenter and Oliver Wyman, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer.